26.02.202601:36:17UTC+00New Zealand Business Sentiment Falls to 4-Month Low

New Zealand’s ANZ Business Outlook Index eased to 59.2 in February 2026 from 64.1 in January, its lowest level since October, though overall sentiment remained firmly positive. Forward indicators softened: export intentions slipped to 19.0 from 20.4, profit expectations declined to 31.8 from 32.9, pricing intentions fell to 53.3 from 56.5, and investment intentions dropped to 24.8 from 28.3.

Cost pressures intensified, rising to 79.4 from 77.8, while credit availability deteriorated sharply to 7.5 from 16.3. Employment intentions were broadly stable at 22.3 versus 22.4 previously, and wage growth expectations edged higher to 3.01% from 2.82%.

Firms’ own activity outlook was little changed at 52.6 compared with 51.6, but reported past activity eased to 23.4 from 26.2. Inflation expectations increased to 2.93% from 2.77%, the highest level since April 2024.

Sectoral results were mixed. Residential construction intentions weakened significantly, dropping to 41.4 from 58.8, while commercial construction remained subdued, at 45.6 compared with 44.7.